The European Banking Authority (EBA) published today an update to the XBRL taxonomy that Competent Authorities should use for the remittance of data under the EBA Implementing Technical Standards (ITS) on supervisory reporting. The new taxonomy will be used for the first reports under the revised Liquidity and Leverage Ratio requirements resulting from Delegated Acts of the European Commission.

The updated taxonomy incorporates changes and corrections to the COREP and FINREP reporting structures. In particular, the updated taxonomy incorporates revised reporting structures for leverage ratio, and new parallel reporting structures for liquidity ratio for credit institutions. These changes represent the amendments to the ITS on supervisory reporting resulting from the Commission's adoption of Delegated Acts amending the definition of the Leverage Ratio (LR) and specifying a new Liquidity Coverage Ratio (LCR) framework.

In addition, the new taxonomy gives effect to the answer to the Single Rulebook question 2014_1042, which specifies that figures for LCR and Net Stable Funding Requirements (NSFR) templates with breakdowns in significant currencies should be reported in units of the relevant significant currency (and so such reports may contain values which are not all expressed in the same currency).

The following documents have been published today:

A set of XML files forming the XBRL taxonomy

A description of the architecture of the XBRL taxonomy

A description of the Data Point Model (DPM), of which the taxonomy is a standardised technical implementation, including both a database and document representations, along with a description of the formal modelling methodology by which the DPM is defined

The EBA also published today an extension (2.3.2) to the currently applicable XBRL taxonomy set 2.3.1, providing representations of FINREP reports for individual entity consolidation scope. The new DPM and taxonomy elements in 2.3.2 parallel those already existing for consolidated FINREP reports, and are provided by the EBA in order to facilitate further harmonisation of regulatory reporting at the European level. It should be noted that 2.3.2 only adds additional, independent reports for individual consolidation scope FINREP, and makes no changes to existing 2.3.1 reports, with which it is directly compatible at the instance level. As such, it may be ignored by entities not needing to prepare or consume individual scope FINREP reports.

Applicability

Since the amended LCR and LR ITS will apply 6 months from the date of their publication in the Official Journal, the new 2.4 taxonomy will apply for reference dates following their point of application. Note that this same application date will apply to the whole 2.4 taxonomy set, including reports other than LCR and LR. The new LCR templates are applicable to credit institutions and not to investment firms, the latter will continue reporting the LCR items using the (2.4 multicurrency version of the) current LCR templates.

Regarding 2.3.2, it is not anticipated that individual FINREP data will be remitted to the EBA in the near term, and so the extension will have no relevant applicability at the EBA level. It is however anticipated that competent authorities may choose independently to make use of this harmonised taxonomy in their data collection processes, for example under the ECB's regulation on supervisory financial information.

Background and legal basis

The taxonomy defines a representation for data collection under the reporting requirements related to own funds, financial information, losses stemming from lending collateralised by immovable property, large exposures, leverage ratio, liquidity ratios, asset encumbrance, additional liquidity monitoring metrics, supervisory benchmarking and funding plans. As part of enhancing regulatory harmonisation in the EU banking sector and facilitating cross-border supervision, uniform data formats are necessary to enable comparable data on credit institutions and investment firms across the EU.

Although, the EBA XBRL taxonomy was primarily developed for data transmission between competent authorities and the EBA, many authorities have been using it for the collection of supervisory reporting from the credit institutions and investment firms they supervise. In this respect, the taxonomy proposed by the EBA will lead to greater efficiency and convergence of supervisory practices across Members States. In addition, it will facilitate the supervisory process, allowing supervisors to identify and assess risks consistently across the EU and to compare EU banks in an effective manner.